All Forum Posts by: Marcus Johnson

Option f: Why not stay in your current home, which would keep the payments low, plus it would be paid off in ten years. Imagine in ten years having an extra $1000 a month to invest with real estate. IMO, most people over buy on their primary which really kills their disposable cash. Not sure why, but it's quite common. In 2015 we sold out home to move to a city with a good school district, but only bought a modest home. It has allowed us to have more cash on hand each month to invest in.

Exactly, you can't just use a credit score as an evaluation because they are many factors involved. Therefore just because someone has a zero credit score doesn't make them automatically not rentable.

Steve Babiak So if someone pays for everything in cash and has good income, no debt and a zero for credit score, your saying that doesn't pass your criteria?

Let me say this on the record. In my neck of the woods, which is Minneapolis and the surrounding suburbs, prices are getting out of control. There will be a correction soon. Might be one year or two years. Now is a good of tme to sell in my market, not buy. I'm saving money to buy when things crash again.

A low credit score doesn't scare me from a young individual that when you dig into their credit report and see they have very low revolving debt and make a good income/steady job. You have to remember there are some smart people out there that don't borrow much money and don't use credit cards. I'd be more scared of a person who has a credit score of 730, but has all kinds of credit open with multiple creditors with balances. It shows me they don't pay off debt and they have a lot of risk.

I'm seeing low inventories in the south suburbs of Minneapolis. Lots of buyers and they are overpaying for their homes. 9% increase in property values in less then one year.

@scott 

@Scott W.

Again, I completely disagree that investors on this forum all have a large cushion such as 20k to 50k that is specifically set aside for Emergencies.   Some of us may not 20k to 50k in savings and might have only 10k set aside and have income that could pay the mortgage and expenses should things go sour.  Let's query how many posts deal with no money down, investing with little down due to no money, I only have 10k in cash what are my options, etc.....  

@Justin Windham

Believe me I know people who live paycheck to paycheck that have taken a loan on their 401k to use as a DP on a home.  

@Scott W.

I beg to differ, most people don't have 20k to 50k as a cash cushion when investing in real estate.   Plus, why in the world would someone take a large loan from their 401k, when they would miss out on it's potential to grow, if they had a large cash cushion.  To risky.  

I don't see anybody talking about should you lose your job don't you have to repay the 401(k) loan within 60 days. To me that seems like a huge disadvantage and could calls for desperate actions to pay the loan back quickly.